Russian company Gazprom has officially shelved its plans to establish a gas hub in Turkey — a project previously considered a strategic move to partially restore its position in the European energy market after the invasion of Ukraine, reports Baltimore Chronicle citing Bloomberg.
Following months of assessing different scenarios, Gazprom concluded that the project is unlikely to materialize and has significantly scaled back work in this direction. Some of the company’s employees had expressed skepticism about the feasibility of the idea from the outset.
The hub project, which was publicly announced by Russian President Vladimir Putin in October 2022, was initially viewed as a potential route back into the European market. This came in response to the loss of key export channels, particularly after the suspension of Nord Stream and the expected end of gas transit through Ukraine by 2024.
However, multiple factors hindered its realization. Turkey lacks the available capacity to transmit Russian gas further into Southern Europe, and Ankara reportedly refused to allow Gazprom to sell gas directly on the Turkish market or via joint trading platforms.
Additionally, the European Union’s strategy to eliminate Russian gas imports entirely by the end of 2027 played a crucial role in Gazprom’s decision to abandon the initiative.
According to Bloomberg, scrapping the project essentially closes one of Gazprom’s few remaining pathways to partially resume exports to Europe — a region that previously brought the company up to $8 billion in monthly revenue.
Currently, Russia supplies gas to Turkey via two pipelines: TurkStream and Blue Stream. Both run along the seabed of the Black Sea.
In 2023, Gazprom posted a record net loss of $6.1 billion under IFRS — the first such result in 25 years — making it the most unprofitable company in Russia. In 2024, Gazprom exported only 32 billion cubic meters of gas to Europe, levels not seen since the late 1970s. The company’s net loss increased to $13 billion.
Earlier we wrote that Russia increases oil and gas revenues as EU remains top buyer.